markets feeling a little bit better. >> existing home sales are the number we are getting. we are seeing a rise month over annual payril for $5.455 million. u.s.argest part of the housing market. that is a three month high. there was a surge in the midwest. there seems to be improving numbers in the housing market. we are seeing stocks higher today following a rebound we saw around the globe. especially commodity lenders, we will dig into those in a moment. nasdaq is leading gains today up i 1%. showing gains. let's look at the bloomberg. technology is performing the best today. that explains why the nasdaq is doing the best today. financials are bouncing back as well. they were sharply down yesterday. it is not quite all of the groups in the s&p that is higher. staples and utilities in particular. today,look at the banks goldman sachs holding its annual meeting here. the majority of shareholders voting to keep the ceo and chairman role as one. all the banks bouncing back today. in terms of technology, supply materials the largest maker of chip making equipment is on the rise today. the company raising its forecast which is above what analysts had anticipated. the company said last quarter, new orders surged by more than 50%. the company is benefiting from a conversion of memory chips to a newer generation. chipmaking other stocks are higher during the session. the s&pe approaching 500 the one-year anniversary of the one year high, i want to take a look at the one-year performance in the major averages. the dow made its record on may 19. the nasdaq did not get there until july. all three major averages are a long way from re-attaining those records at this point. >> how are they doing today? >> we are seeing a rebound in commodities today. let's look at oil and gold. lower.s just turned so has accrued. energy stocks are trading lower today. seeing a bounce around today. let's look at the dollar. it had been experiencing its first down day in the past three sessions. it has reversed higher. it looks like that is running pressure on oil and gold. the dollar is now on its third straight week of gains. it is seeing an upsurge. mark: you are beating me, julie. the stoxx 600 is on its second consecutive week of game following two weeks of losses, following two weeks of gains, following two weeks of losses. every industry group on the stoxx 600 is trading higher today. raising about the fed interest rates in june. the index down by 1.09%. it is up 1.1% today. all those fears are undone. jewelry forecasted a different -- difficult first half. reported company also earnings that missed analyst estimates. the company has been struggling, it has cut a most 100 jobs in its watchmaking operations. we have weak demand in asia that has been affected by the slowdown in terrorism in -- tourism in europe. a trend analysts say could extend after the russell inmints -- russell bombings march. down by 34%. burberry 26% lower. lvmh up the same. arm as the top of the three up by 25% today. italy's biggest lender is considering selling a stake in its online broker think i'll bank. it is reviewing holdings in poland and turkey. it is raising capital. chiefe also saying the executive, they want him out. that should be big if it happens. he eliminated that the thousand jobs. he is selling assets to comply with industry standards. he has ruled out a share sale. leaving it among the least capitalized european lenders. shares are up 5.6% today. , wedeen asset management spoke to the chief executive officer, and the big take away was we want to stay independent. he has had interest from asia, australia, europe very speculation about a takeover has come. this company has seen outflows for the best part of three years. we have seen share prices drop by 44%. mr. gilbert founded the company back in 1983. shares in aberdeen are up 3% today. >> that is quite important for those companies. excellent. let's get to first word news. missing -- looking for that missing egyptair jetliner. wreckage from the plane has been recovered. seats, luggage, and some human remains were recovered in the mediterranean. a flight was on the route from cairo to paris when it's finished. 66 people were on board. people have said it is more likely at terrorist attack than a mechanical failure. hoping -- will provide information about the islamic state strategy in europe. he was arrested in belgium after four months on the run. he was extradited to france. in western canada, firefighters have defended to oilsands sites. the fires erected at the beginning of the month. they have earned an area that is more then five times the size of new york city. they are spreading east into a remote area. in washington, house republicans and democrats have reached a deal on the puerto rico $70 billion of debt. the board would oversee some debt restructuring. lawmakers are trying to pass a bill before puerto rico default on a $2 billion debt payment due july 1. global news 24 hours a day powered by our 2400 journalists in more than 150 news bureaus around the world. i am vonnie quinn. >> thank you very getting back to the markets. stocks are climbing after the s&p 500 dropped yesterday. it is one year since the s&p reached an all-time high. our next guest says the u.s. stock market has landed at a crucial reference. michael o'rourke is a chief strategist at jones trading. he has been calling for a bear market since september. michael o'rourke: it could be the start of it. it becomes challenging. if you look over history, there have only been a couple of periods where the target has gonefor 18 months and not made a new high, but then broke out. >> we are close to those new highs, but then we miss them. as julie'rourke: showed earlier, we are about 3.5% away from the all-time high registered one year ago. time and price are key in the stock market. what is working right now is prices held up. time is working against us. we have a negative fundamental backdrop. the next six months or so are going to be pivotal because if you don't actively make that big high, it gets harder as time goes on. >> the fact is you cannot be surprised. the u.s. trade is so expensive right now, more than 16 times earnings. do you go to other markets outside the u.s.? michael o'rourke: that is it. if you look at standard and poor, what they put up, earnings 6.5% are down year-over-year. if you analyze that, pay is coming at $96. expectations are $115. the next three quarters will have to average record quarterly earnings to hit that number. i am seeing a market that is 20 times earnings. that is a risk. that is a risk the fed sees. they talk a lot about financial stability this week. they highlighted how despite the weakness in the equity markets, they rallied primarily based on a re-risking due to said dovishness -- fed dovishness. mark: are we heading down or will he consolidate? michael o'rourke: i think the fundamental backdrop race the bear market more likely. the market does hold in. it has been very resilient for the past 18 months. we have been in consolidation. will we get back up to that 2135 level or will we correct lower? the earnings data and the fed tightening, those are major tailwinds that drove the bull market for six or seven years. they are reversing. the fed tightening, you have earnings going down, earnings peak in 2014, and the economic data peak in 2014. mark: what has changed this week? we have seen interest rate probabilities move from 4% in june to 28%. we are below 50%. it is a sizable jump after the minutes. has anything changed? has the dial shifted this week? michael o'rourke: i think the fed highlighting the june meeting as a potential one for a hike and saying it is on the table and it should occur as long as we see a rebound in economic data. rebound from q1. that leads people to believe the fed should really -- i would think there would be a better than 50% chance of tightening. the market still does not believe them yet. the fed lost credibility because every time there is something to worry about, they air on the side of caution -- err on the side of caution. we have another meeting in june. >> you mentioned exit right there. the fed tightening in june or july or later, that will happen. in europe, you have a potential brexit . where in the world do you invest? michael o'rourke: i think that is a hard question. we spent the last six years of central banks inflating assets around the world. i would be in a defensive position. when bonds are expensive and stocks are expensive, cash is the most attractive as it. i would want to have a stockpile of cash to invest when the correction occurs. at the end of the seven-year expansion, i believe. in that environment, i want to be as defensively positioned as i can be. i want to have ammunition ready to put to work. mark: when will -- pickup. we have a lovely chart here. it shows various gauges of volatility. near the highs. on average this year, the fix is at its highest since 2011. you have move index for treasuries. you have gold and oil. when is volatility going to pick up again? we saw january and that you're a heightened volatility. -- those months find us? months of volatility behind us? michael o'rourke: go back to 2011. we have been in static years of monetary policy. investors have not had to analyze the number and say what does that mean to my position. what does that mean to fed policy. we are going into an environment where the fed has to make a decision. one of the big concerns starting this year was slowing economic data. the fed will tighten three to four times. we saw the selloff that occurred in january and february. markets were concerned. andit is five months later instead of having three or four tightening's, the fed is talking about to over the next six months. we will have more in 2017. in that position, i would believe we are in a similar position as we were in december and january. we have push things forward. the s&p 500 is at the same level. we have that risk of volatility picking up over the summer. mark: pleasure to have you on. michael o'rourke chief market strategist at jones trading. coming up, falling short. dates for yahoo! coming in much lower than expected. we will have more on this after the break. ♪ mark: from london and new york. i mark barton. >> time for the bloomberg business flash. a look at the biggest business stories in the news right now. not consent it will to the repricing of stock options without shareholder consent. options givendes to employees by jack dorsey last fall as part of it effort to retrain -- retain talent. third quarter sales under a demand increase -- have billionand dollars in new orders in the second quarter. that is up 52% in the prior three months. that is the bloomberg business flash. mark: we are also watching shares of yahoo! today falling. the wall street journal reporting that bids for core assets may fall short. verizon and other bidders are expected to offer in the range to $3 billion. it is still early in the hitting process. news take spoke about the on surveillance. >> i don't think there is any surprises to the fact that buyers are prepared to pay less than the sellers want. the fact this is leaking into the press is not an enormous surprise either. >> i understand this is a delicate point. is a just and that is adjustment to a balance sheet a tangible -- is there an urgency when you look at the accounting of yahoo!? >> i cannot comment on the specifics on what is driving the pricing in yahoo. the totality of the process, it is not any specific thing that is going to be a catalyst for as you let in, i drop of 30% -- 50%. i don't think you can pin that down to an accounting issue. mark: the next round of yahoo! bids is due the first week of june. still ahead on "bloomberg markets" it is friday. we have a look at the $3 trillion market. that is next. ♪ shery: welcome back. it's go to julie hyman who is standing by for our deep dive into the etf market. been eighte has acquisitions of etf companies and the past few years. we cover the etf industries. we talk about what has been going on. 2015 was a big year for corporate mergers and acquisitions. we have seen an uptick recently. it has been big for the past three years. eight total in the past two years. boxbig one is harper lattice strategies. if you haven't heard of that, it is a small one. no one has. big bricks and mortar's neutral funds companies, these bricks and clicks. etf has been taking a lot of the assets mutual funds have been losing. put them into the ground over the next few years, or stake a claim or the future. buying is easy. they are not buying for the addicts. -- products. what they are buying is talent and industry experience of people who know how to run. passive managers. people who know what they are doing in creating smart data products. -- data products. none of these companies that have -- on the market cap front. julie: what are they doing? is it a matter of getting a slice of market share? even if you beat them, it means going to zero. you will lose money. smart beta is where it is at. is is takinga active manager secret sauce which is a metric system anyway and turning it into a rules-based index. that is all it is. they are going to go into smart beta. you can charge a little more port smart beta then you can for the s&p index. pute: if i'm looking to money into an etf, does that mean i get to see money on both sides? eric: if you want to do that strategy, you get the etf. hartford wants to start their own line of smart beta. they start cranking them out left and right. janice bought velocity shares. for the is known inverse etf. we now know why. they have pumped out smart beta products since they bought them. they are pumping out smart betas. regardless of what you acquire, they will use them to pump out their own brand name smart beta. julie: does this mean anything to customers? >> it might help them. the acquired company gets distribution. that is really what they want. it is a win-win. that will help bring in the quiddity. that is how the current customers will benefit. there are not many current customers. julie: presumably if you like hartford you will get them. thanks eric balchunas. shery: still ahead, what could a slowdown in technology mean for the commercial real estate market? we will hear from one of the top real estate agents in new york. ♪ >> live from bloomberg world headquarters in new york and london i am shery ahn. mark: i am mark barton. this is bloomberg markets on bloomberg television. vonnie quinn is in the news room. vonnie: a new report from the imf underscores the differences it has over greece. it says greece should not make payments on its european ballot until 2040. the plan was included in documents obtained by bloomberg news. the world health organization is concerned that the zika virus is in the katy perry islands. -- islands. 4500 have been more than cases reported in cato verde. sending mixed signals about how to increase economic growth, japan and canada want a plan that includes more fiscal the newest. germany is pushing back against calls for more spending. president obama will meet with the indian prime minister in washington next month. the leaders are expected to discuss climate change and clean energy partnership obama announced on his last trip to india. global news 24 hours a day powered by our 2400 journalists in more than 150 news bureaus around the world. i am vonnie quinn. shery: thank you. it is time to get you caught up on market action around the world. let's start in asia. we are seeing a gain for the second consecutive session in the yen. it has been surging in recent months. it is up 9% this year. composite also finishing positive, up .7%. one story out of the region, aares of oil rose today after takeover worth $2.2 billion was announced. we have more from hong kong. >> focused on pop in new guinea. development costs are relatively cheap. cheaperower taxes and labor than australia which is the world's third-largest energy exporter. 60% by showing the majority of its triumph like this and expiration assets acquired from the biggest oil company in france. the takeover is expected to be completed in the third quarter of 2016. minutes left of the stock session this week. it looks like dell achieved that distinction. the stocks europe 600 followed yesterday. it is rising by 1.09% today. concern about the fact dominated yesterday. investors are brushing aside concerns today. gains in paris and frankfurt aren't clear on that. have a look at industry groups today. the best-performing industry groups. the top one is basic resources. that is the bloomberg code if you do not know. metals and minors rising along with increasing commodities. showing volatility of the --ustry when these sorts of falling is following -- for the first time in three days. it is up 5% against the dollar since that of your it. the low of 2009. interesting comments from bank of england policymakers in the last 24 hours. may requireeconomy stimulus even in the event of a boat to remain in the you -- a vote to remain in the eu. let's get over to the united states again. the nasdaqlittle has live in new york. >> we are looking at a rally here for the nasdaq. it is up 1%. urban outfitters, shares are up two days in a row after the company reported an upbeat quarterly report on wednesday. morgan and stanley is upgrading the shares from overweight to equal weight. the first quarter results show that sales and margins are moving in the right direction. the big question is whether or not a turnaround could happen. a turnaround is perhaps underway. when we look at a one-year chart, the strong downtrend that had everyone concerned about previous trends in the shares of urban outfitters are starting to reverse. suggesting there could be more upside as buyers become interested in the medium term and long term. mark: retail has been weak lately. that story is a little anomaly. any retail stories to tell me about to back up that trend? >> shares of ross stores down sharply to do it. the company did miss same-store sales for the first quarter. it missed revenues. even more, the disappointing second-quarter. sharesargo saying by the on this week. he says the long-term fundamentals are intact. we do have shares back below the 200 day moving average. really flirting with that level of support. trainingased on prior history, more downside could be a had four ross stores. mark: abigail doolittle at the nasdaq. shery: fears of a slowdown in technology could impact the commercial real estate market could be overblown. technology, advertising, media, and information firms remain dominant in new york. what about the rest of the country? joining me now is mary ann tighe who is responsible for more than 93 million square feet of commercial real estate transactions in new york. it is great to have you with us. let's start with new york. it is such a popular place for a global company headquarters. rents are going to be astronomical here. how is the city performing now? it is all about the demographics and workforce. that is true everywhere. in new york, we are at a historic moment for the city. we have the biggest relation ever. had 50 million tourists last year. i think the really impressive jobs created,000 in 2014 and 2015. we have never seen anything like that before. we are seeing growth in our markets. we have the tailwind of the bloomberg administration and the de blasio administration has managed to keep us on course. shery: that is dependent on the u.s. economy doing well. how about market dynamics? do people still think about real estate in terms of location, location, location? mary: as you said, what is the different chain factor, it is product, product, product. people used to say we want 100,000 square feet and to be on park avenue. 150density is going to be square feet per person. let's look at everything. by everything, they mean manhattan and brooklyn. it is implicit. it has almost become an extension of manhattan. the island of manhattan has 398 million square feet of office space. million now has 45 square feet. it is exponentially larger than london which is the next largest market in the world. mark: he segue perfectly to mention london. i can get to the upcoming referendum. purchases of u.k. property might do with the u.k. vote to leave the eu. it seems to show that investors will shun the u.k. and look at purchases elsewhere. and not particularly in continental europe, but the rest of the world. what impact will this referendum have on commercial property markets here in london? mary: london has always been considered a safe haven for global dollars much away my own market has. i think when you talk to londoners, they will tell you the impact on business, the constraints of withdrawal, will definitely push dollars to other markets. i think new york city where investment sales market is still strong, where we are talking about capital rates that are for for everything and three and two for certain property types, i think will be the beneficiary for this. we are hoping it does not come to that. it is nice to have a diversity of global markets. companies value in your book to put their employees in a wide variety of places. i will mention your rents will definitely be impacted as a consequence of this. mark: what about further east? shery ahn is a curse -- of course from hong kong. will there be in effect in the asian markets? mary: we are seeing chinese investors not only in asia, fleeing the region to come to new york and buy property here. mary: it has been interesting to watch the market. canadians are still the strongest in the new york market. tied for second place are the chinese. and the norwegians. what is interesting about the chinese presence in our market right now is it has taken a different direction. we have seen chinese money come in as a minority owner. the operators are in the hands of local developers, owners. now we are seeing chinese firms by buildings, operate them, set up their own organizations here. i sold bank of china it's north american headquarters building on bryant park. they will operate that building in tandem with heinz. same thing. big conglomerates coming in here. mary ann tighe, thank you for your time. mark: coming up on bloomberg markets, bernie sanders is refusing to give up his for the white house. is he behind the scenes, assuring the party to do his part to the donald trump. a bloomberg news exclusive next. ♪ shery: welcome back. now to u.s. politics, bernie sanders continues his fight against hillary clinton for the democratic nomination. many in the party here that sanders threatening to take the fight all the way to the convention is helping donald trump. says heinority whip believes sanders is doing his part, saying, "i'm convinced as bernie sanders has said repeatedly, he will be on the team to defeat donald trump." sahil joins us from washington. we have seen such a defiant stance on sanders. sahil: we absolutely have. it is a remarkable contrast. he is telling supporters what he needs to tell them to keep them energized all the way through the primary. he is eyeing california which has hundreds of delegates. what he is telling democrats privately is not to worry. he is not going to burn it all down like others are suggesting. he is not going to go so far as to substantially hurt hillary clinton against donald trump he is going to fight to the end. shery: bernie sanders cannot win. what is his endgame? sahil: the endgame is an interesting question. as far as i can see it, it is to maximize leverage going into the democratic convention and felt up yet. he started this campaign to raise issues, to give working people a raise. he wants to do two things. influence the democratic party platform to add his priorities like single payer health care, breaking up the banks, tuition free college. he wants more open primaries. what he is doing now is trying to maximize the votes he gets through out the primaries and the delegates he brings to push these changes and forth these changes. that is what it appears increasingly he is going for. mark: to what extent is donald trump salivating at these divisions within the democratic party? is there a theory to be had that maybe he thinks some of bernie sanders's voters will switch sides and vote for him? sahil: he is saying that. he said that in new jersey yesterday. he believes sanders voters will come to support him in the general election. it is highly dubious that is the case. parties have a way of getting behind their nominees at the end of the day. bernie sanders and donald trump have some differences that palin comparison to the differences between hillary clinton and bernie sanders. bernie sanders and donald trump agree on trade deals that have been disastrous for the united states. they both want to fight against them. hillary clinton has been all over the map on trade. she said nice things about the tpp, even though she is now skeptical. that is one thing donald trump has signaled he will try as part of a strategy to win voters. he might have a little bit of luck with bernie sanders voters. mark: thank you very much or bringing us that exclusive story. still ahead on "bloomberg markets," and exclusive look inside a luxury empire. a special campaign starting today across the u.s. and europe. ♪ mark: he is the oldest son of france's renault are no -- arnault. rudyne arnault already has -- berluti. he came up with the idea of an event starting today. a special day with more than 50 sites across europe opening to the public. paris inwn with him in an exclusive interview. i remember it was a time when i was a little frustrated by the image of the group. i remember the group in 2011 being more considerate of the financial group, almost like a firm. something that you saw with distance when you spoke of the ldm h group. -- lvmh group. i had this idea of grading this open way. we lacked transparency. free and openess to the public. not necessarily to our clients, that was something that appeared at the time. >> how many visitors do you expect? antoine: my goal is 150, but it is symbolic. what we want is people to have a great experience and to discover what is behind the curtain. dotinue to showcase what you with that pride and energy. >> this may be the image as opposed to your father that you are trying to instill in the lvmh group. antoine: clearly we have a different personality. we are different people. he is of another generation. evidently my generation is a little closer to social networks, to having group discussions. very much in the tradition of my way of working to brainstorm and have an open discussion. i am not saying he is not open to discussion. he is. he is aware of what is going on on the markets and inside his organization. it is maybe a different way of doing business. they are complement tree. presidency -- at berluti in paris. you became managing director in 2011. the same year of the transition. in terms of sales, where are we now and how do you see it growing in the future? antoine: in 2011, it was roughly 30 million euros. now it is 116 million euros. the growth is substantial. -- ambition is to contribut continue growing. has been a big success. we are going to refine our silhouettes. is leaving, and we are hiring a new one. it is an important moment in time for us. >> how are you recruiting him? what you want him to do with design? antoine: it is a historical brand. maybe a little too formal. a little more edgy and modern. maybe a little less details and a casualness that might lack right now. 2013 thatther sat in he wants you to make it profitable in three years time. antoine: we are a little late on the profitability issue. 2012, 2013,during and 2014 were substantial. we are not far from our strategic plan objectives. we are a little late on profitability. >> as you can see here, is that something that is going to grow as part of the brand? antoine: wearing a sock as issue is incredible. i was lucky enough to have of the spoke pair of shoes. it is like entering a sock when you put on your shoe. it is perfection. >> is it quite expensive? antoine: it is quite expensive. it is on average 7000 euros. -- are thereeasy any major differences between you and your father? are you a good fit for the younger generation and the future of the group? antoine: i don't know. i hope i am. i know we get along very well. are not only father and son, but also business partners. we debate a lot. we speak about business a lot. luckily we do not speak only about business. it is a nice relationship. working with your family is very pleasant. being a son and a family at mine is a great responsibility. >> are you ready to take on more? antoine: we will see. my father is in very good health. he is 67 years old and will work for the next 30 years. we will have time to talk about that. shery: that was antoine arnault. he was speaking in paris. you can read more about luxury at bloomberg pursuits. let's have a look at what is happening in the european close today. an exclusive interview with emmanuel farber. what regions are seeing the most demand. a quick check on markets today. it looks like stocks will finish higher for the second consecutive week, shrugging off concerns yesterday that investors had about the fed june meeting. the european close is next. ♪ sherry: from bloomberg where headquarters, i am sherry ann and for betty liu. mark: you are watching the european close on bloomberg markets. we will take it from new york to london to paris and stockholm. this is what we are watching today the chief executive of food and average conglomerate dannon is here and we will talk about its sustainable elk -- agriculture pledge print sherry: a new survey out of sweden shows investors may have had enough of the central bank policies. the angry birds game was a huge hit and can lightning strike twice? the company is betting big on it spending $100 million on the angry birds found. it's out today in the u.s. sherry:

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